CBN officially Approves $20,000 for BDCs at N1,580 per Dollar

The Central Bank of Nigeria (CBN) announced on Friday, September 6, that it has approved the allocation of $20,000 to each eligible Bureau De Change (BDC) operator. This move, aimed at improving dollar liquidity, comes at an exchange rate of N1,580 per dollar.

In a statement released by the Acting Director of the CBN’s Trade and Exchange Department, Williams Kanaya, the apex bank said the approval forms part of its efforts to inject more liquidity into the foreign exchange market, stabilizing the naira and addressing the demand for foreign currency.

“To this end, the CBN has approved the sale of 20,000 dollars to each eligible BDC operator at the rate of N1,580 per dollar,” Kanaya stated.

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He emphasized that the funds are intended to meet the demand for invisible transactions such as travel allowances, medical bills, and tuition payments, which require foreign currency. Kanaya added that BDCs are allowed to sell to eligible end-users at a margin not exceeding 1% above the purchase rate from the CBN, ensuring regulated pricing for customers.

“Eligible BDCs interested in this transaction are directed to make the Naira payment to the CBN deposit account numbers provided to them,” he explained.

Kanaya further outlined the process for obtaining the approved funds, noting that after payment, confirmation and the necessary documentation should be submitted to specific branches of the CBN. These branches include Abuja, Awka, Kano, and Lagos, where the BDCs will be able to collect the allocated $20,000.

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This policy is part of the CBN’s broader strategy to ease the pressure on the naira, manage exchange rate fluctuations, and ensure access to foreign exchange for essential purposes.